Argentina's Dairy Industry Overview
Argentina stands as a key contributor to the global dairy market, with an impressive annual milk production of around 10.5 billion liters as of 2023. The nation's robust dairy cattle herd numbers approximately 1.6 million, reinforcing its position as an essential supplier in the international dairy sector.
Production and Processing
The country boasts a sophisticated dairy processing infrastructure capable of handling about 9 billion liters of milk annually. Argentina is particularly noted for its cheese production, with annual yields of approximately 500,000 metric tons. Additionally, the nation produces 150,000 metric tons of milk powder and whey, underscoring its strong dairy processing capabilities.
Key Enterprises and Dairy Farms
Prominent entities in the Argentine dairy sector include La Serenísima (Mastellone Hermanos S.A.), Saputo Inc., and Williner. Leading dairy farms such as Tambos La Unión and Estancia La Nueva are pivotal in national milk production.
Exports and Imports
Argentina exports around 3.5 billion liters of dairy products annually, including liquid milk, cheese, and milk powder. The completion of the EU-Mercosur trade deal is expected to enhance trade relations significantly, with a projected 50% increase in exports. However, imports from Germany have been suspended due to concerns over Foot-and-Mouth disease.
Significant Market Events
The industry has faced challenges, such as board changes at Saputo Inc. and an anticipated 7% decline in milk output for 2024. Despite these challenges, companies like Milkaut are investing in modernizing and expanding their plants. The recent removal of export taxes has been a pivotal development, enhancing the prospects for the local dairy industry.
Outlook and Trends
Despite challenges like rising production costs and climate disruptions, the sector is poised for growth, with innovations such as robotic dairy farming in Tacural, Santa Fe. Reports indicate a nearly 16% year-on-year increase in milk production as of March 2025, with a projected annual growth rate of 6%.
Challenges and Innovations
Financial crises pose significant challenges, with a leading dairy company in Santa Fe facing a debt of over 5.42 billion pesos. The cooperative model, advocated by CAPROLECOBA, highlights the need to remove export duties to boost income and investment. Meanwhile, organic dairy production is gaining traction, as demonstrated by an organic dairy in General Rodríguez supplying milk to Nestlé.
Cultural and Consumer Trends
Tandil celebrated its Banquete Típico cheese's recognition as the best in the semi-hard cheese category, while a new ice cream flavor, chocolate and almonds, gained popularity.
Regional Support
Tucumán has extended tax benefits for its dairy sector until 2035, strengthening local production. Despite inflation pressures and economic challenges, the industry is experiencing a resurgence, with a 10.9% increase in national dairy output in the first quarter of 2025, further consolidating with a 12% increase in the first half of the year.
Conclusion
Argentina's dairy industry is set to achieve record production levels in 2025, with projections suggesting an output between 11.4 and 11.5 billion liters. However, the sector faces a downturn as consumer spending decreases, with a 6% contraction in dairy product sales reported in July 2025 compared to the previous year. The association of small and medium-sized dairy companies in Argentina, APYMEL, is advocating for a reduction in milk prices to address the imbalance. Despite significant challenges, Argentina remains a crucial global dairy supplier, with continued efforts to enhance sustainability and market access, particularly through strategic international engagements. Notably, Argentina contributes 1% to Russia's dairy imports.
Federal authorities in Argentina are scrutinizing former SanCor executives over unremitted social security contributions. The Federal Justice system in Argentina is currently investigating former officials of SanCor for failing to deposit mandatory pension and health insurance contributions.
Modified: 2025/10/21